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RICS/WORK > Ethics/ RoC > Flashcards

Ethics/ RoC Flashcards

1
Q

What must you do when setting up a practice (RICS REQUIREMENTS)

A
  1. Inform RICS
  2. Appoint ‘Responsible Principle’ for all RICS comms
  3. Register with RICS
  4. Arrange PI and send to RICS
  5. Set up client money handling procedures
  6. Obtain RICS complains handling procedure approval
  7. Set up complaints log
  8. Appoint complains handling officer
  9. Use RICS logo kit
  10. Plan business for future
  11. Ensure CPD logged
  12. Completely RICS annual return at year end
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2
Q

7 bits of info needed for RICS registration

A
  1. Type of business & staffing
  2. Responsible principal
  3. Statutory regulated activities (e.g. financial services)
  4. Nature of clients
  5. Complaints handling procedure and records
  6. PI insurance details
  7. If holding client’s money
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3
Q

RICS ethical principals which the RoC are based on

A
  1. Honesty
  2. Integrity
  3. Competence
  4. Service
  5. Respect
  6. Responsibility
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4
Q

5 Rules of Conduct

A
  1. Act with honestly, integrity and comply with prof and RICS obligations
  2. Maintain prof competence and undertake tasks where you have necessary expertise
  3. Provide good quality, diligent service
  4. Treat others with respect, diversity and inclusion
  5. Act in public interest, take responsibility for actions, prevent harm and maintain public confidence in the profession
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5
Q

12 RICS behaviours

A
  1. Do not mislead - even by being complicit
  2. Don’t be influenced by others - e.g. gifts, self interest, etc
  3. Identify and avoid conflicts of interest
  4. Firms have process
  5. Professional, honest advice - based on relevant and reliable evidence
  6. Open and transparent about fees and services
  7. Prevent other being misled about their professional opinion
  8. Do not take unfair advantage of others
  9. Protect confidential info
  10. Keep client money safe
  11. Dont misuse client money
  12. Don’t facilitate financial crime
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6
Q

3 types of conflict of interest

A
  1. Party conflict - have duties to 2 clients which conflict
  2. Own Interest conflict - your interest conflicts with your client
  3. Confidential info conflict - have duty to keep info confidential to one client, but also a duty to make the info known to another
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7
Q

3 levels of RICS disciplinary procedures

A
  1. Action by head of regulation
  2. Disciplinary panel
  3. Appeal panel
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8
Q

4 outcomes of Head of Regulation disciplinary investigation

A
  1. Serve fixed penalty notice (e.g. fine or caution)
  2. Make a regulatory compliance order
  3. Refer to single member of Regulatory Tribunal for consideration
  4. Refer matter directly to a Disciplinary Panel
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9
Q

What should terms of engagement include

A
  • be in writing
  • state client’s agreement to proposed fees
  • if payment of any expenses
  • copy of firms’ complaints handling procedure
  • cannot act on instruction until terms of engagement signed
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10
Q

When should you decline instructions

A

No agreed contract

Insufficient facts or competence

Conflict of interest

PI liability cap not agreed or PI not covering the works

Client on UK govts sanction list

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11
Q

Key paper on conflict of interest

A

RICS Global Professional Statement on Conflict of Interest (2017)

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12
Q

3 types of conflict of interest

A
  1. Party conflict
  2. Own interest conflict
  3. Confidential info conflict
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13
Q

General complaints handling obligations

A

Inform RICS of complaints handling procedure to approve

Procedure must be clear and transparent, free and include a redress mechanism

Notify Pi insurer asap when complains made

Include procedure in terms of engagement

Maintain complains log

Appoint complains officer

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14
Q

2 stages to complaints handling

A
  1. In house - acknowledge within 7 days and investigate within 28 days by complains officer or senior member
  2. If not resolved in step one, does to independent third party redress scheme
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15
Q

Minimum PI Levels

A

Based on prev years turnover

Under 100k - min 250k PI

100k-200k - min 500k PI

Above 200k - min 1mil PI

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16
Q

Max levels of uninsured PI excess

A

Based on Limit of Indemnity:

Less than 10 mil = greater of 2.5% or 10k

More than 10 mil = no limit

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17
Q

PI run off period

A

6 years after firms stopped operating

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18
Q

Key reading on handling client money

A

Client Money Handling (2019) - professional statement

19
Q

Key procedures when handling client money

A
  • clear segregation of clients account, with ‘client’ in the name
  • use secure accounting and data systems
  • agree terms of the account with the client
  • must not overdraw the account
  • maintain a ledger
  • money must be available to withdraw on demand
  • audited annual by certified accountant, and by RICS every 3 years
  • display client money handling procedures on website
20
Q

What is the RICS Client Money Protection Scheme

A

RICS backup funds to reimburse the public when lost funds through an RICS regulated firm

21
Q

3 Prof obligations for members

A
  1. Comply with CPD
  2. Cooperate with RICS
  3. Provide info reasonably requested by Standards Regulations Board
22
Q

Prof Obligations for Firms (7)

A
  1. Publish complaints handling procedure and log
  2. Sufficient PI for current and previous work
  3. If sole principal = make arrangements if they can no longer work
  4. Cooperate with RICS
  5. Provide info to SRB
  6. Public business literature in line with RICS policy
  7. Follow Rules for Registration of Firms
23
Q

5 principles for better regs (PACTT)

A

Proportionality
Accountability
Consistency
Targeting
Transparency

24
Q

What is the key money laundering regs

A

Countering Bribery and Corruption, Money Laundering and Terrorist Financing

Published 2019, became prof standard in 2023

25
Q

What does a customer DD check consist of

A
  • verify ID from reliable source
  • try to ID beneficial owners
  • record company name, number, registered address
  • record names of company directors
  • get info on the business
26
Q

Penalties for due diligence checks non compliance - AML

A

Max 14 year prison sentence and or unlimited fine if assisted in money laundering

Max 5 year prison sentence and or unlimited fine for failing to prevent money laundering when suspicious

27
Q

Year of Royal Charter and granted by who

A

1881 by Privy Council

28
Q

RICS Governance Hierarchy

A

Top = governing council

Below = Standards and Regulatory Board, Audit Committee and Management Board. They implement the governing council’s strategy

29
Q

How to demonstrate good client care

A

Clear instructions and agreement

Good communication

Honest and realistic

Provide complaints handling procedure

30
Q

6 principles of bribery act 2010 - as in actions to consider

A

Proportionality
Top level commitment
Risk assessment
Due diligence
Communication
Monitoring and review

31
Q

What must agents do if they let properties worth over €10,000 per month

A

Register with HMRC

32
Q

PI run off

A

6 years min £1 mil

33
Q

Two types of PI policy

A

Each and every claim bases

On the aggregate

34
Q

What is locum agreement

A

Some practitioner has mechanisms in place for clients in case they can not work

35
Q

7 principles of data protection (holding data)

A

Lawful, fair, reasonable
Purpose limitation
Data minimisation
Accuracy
Storage limitation
Security and confidentiality
Accountability

36
Q

Key AML legislation

A

Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017

37
Q

Key definitions of Bribery Act 2010

A

Relevant function

Improper performance

38
Q

Why were RoC updated in 2022

A

Previously in 3 docs - now in one

Simpler structure

Clearer examples

Focus on diversity inclusion respect

Understand evolving technology

Tackling global issues

39
Q

Dates for new RoC

A

Published 2019

Effective 2nd Feb 2022

40
Q

How many chartered surveyors needed for a firm to qualify for RICS registration

A

25%

41
Q

Key principle for negligence

A

‘Duty of care’ - must be able to prove how you’ve done this

42
Q

What was proceeds of crime act?

A

2002 govt legislation

Profits from criminal activity can be confiscated by authorities

Judged on extent of the crime - can get up to 14 years in prison too

43
Q

Process for acting for a client

A

Compile all info on the instruction

Conduct conflict of interest checks

Check competence

Check PI cover

Prepare written instruction letter

RICS/WORK (19 decks)

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